CHIRAWA INVESTMENT LIMITED Vs. INDIABULLS FINANCIAL SERVICE LTD

JUDGEMENT

(1.) THE present appeal has been filed under Section 37 of the Arbitration and Conciliation Act, 1996 (hereinafter "the Act") against the order dated 23. 7. 2009 passed by the Arbitrator whereby the present appellants, who are arrayed as guarantors/respondents in the claim petition filed before the arbitrator, have been restrained from disposing of the immovable properties as stated in the said order and which properties though were mortgaged by the appellants but the mortgage deeds were not registered. Further, by the impugned order, the learned Arbitrator had restrained the appellants from selling, transferring or creating any third party interest in any manner in respect of the shares of Gujarat Heavy Chemicals Ltd. (GHCL) and Golden tobacco Ltd. (GTL ). By the same order, a restraint order has also been passed that none of the parties or their proxies shall exercise their voting rights in respect of the said shares till further orders.

(2.) THE scope of hearing of an appeal against an ex parte injunction order passed is indeed very limited. The two basic aspects the court has to see is firstly whether the court lacks jurisdiction to pass such an order or secondly that on the averments made and the documents filed the injunction order could not have been passed.

(3.) BEFORE I proceed in the matter I may note that I have heard senior counsel Mr. Dave appearing for the appellant at great length. During the course of hearing I even put it to the learned senior counsel that if I pass a detailed order making observations on merits on the contentions as raised by him the same may possibly affect the decision by the Arbitrator in the hearing of the main injunction application, however, the learned senior counsel said, that is a risk he is willing to take.